AT&T's Diverse Ethernet Portfolio Cited by New Paradigm Resources Group and Telephony Magazine at Leadership Forum

San Antonio, Texas, July 11, 2007

AT&T Inc. (NYSE: T) today announced that AT&T Ethernet services received the "Most Innovative Carrier Ethernet Service (Diversified)" award from New Paradigm Resources Group, Inc. (NPRG) and Penton Media's Telephony magazine. The award was one of several Communications Innovators Awards presented at NPRG's Spring Leadership Forum during the NXTcomm 2007 show in Chicago.

AT&T was recognized for its clear leadership in the Ethernet market and its ability to integrate its Ethernet portfolio as a result of mergers with SBC and BellSouth. The award also cited AT&T for providing, "complementary perspectives on Ethernet, but resulting in a superior set of offerings."

"We are proud to be honored as an innovator that is driving the Ethernet industry forward," said Sanford Brown, vice president, AT&T Connectivity and Metro Network Solutions. "The combination of AT&T, SBC and BellSouth has enabled AT&T to provide the most comprehensive suite of Ethernet services, along with one of the broadest Ethernet footprints in the industry. We are extremely proud of the recognition given to our metro Ethernet services, as we continue to expand and improve the reach of our Ethernet capabilities," Brown added.

With a 22-state Ethernet footprint, AT&T's Ethernet services provide customers with a highly efficient, cost-effective solution for communicating across multiple locations within a metropolitan area. The service is ideal for organizations that want to link buildings in a metropolitan area through broadband connections in order to share information across employees, customers and suppliers, and other users. These solutions also provide an expanded service levels that can give businesses a wider selection in the type of service level they want and support bandwidths ranging from 2 Mbps up to 10 Gbps.

AT&T Ethernet services can be configured in a variety of ways: point to point, point to multipoint and multipoint to multipoint. Today, businesses use metropolitan Ethernet services for a variety of connectivity options including dedicated access to the Internet, global access to a multi-protocol label switching platform, private line access to a managed area network or wide area network, network access via SONET, or dense wave division multiplexing rings, and switched access to a virtual private network.

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ABOUT NEW PARADIGN RESOURCE GROUP (NPRG)
NPRG is the nation's leading strategic consulting and research firm for innovators within the communications industry. NPRG provides business strategy and technology advice to their clients. This is accomplished by identifying, analyzing and forecasting emerging technologies and trends, and supporting mission critical decision-making processes for service providers, technology developers and financial institutions. NPRG delivers proven business strategies, product plans and market forecasts that enable its clients to succeed within evolving market conditions. For more information about NPRG, visit www.nprg.com or call 312-980-7848.

ABOUT PENTON MEDIA
Penton Media, Inc. is the largest independent business-to-business media company in the U.S., serving more than six million business professionals every month. The company's market-leading brands, which includes Telephony magazine, are focused on 30 industries and include 113 trade magazines, 145 Web sites, 150 industry trade shows and conferences, and more than 500 information data products. Headquartered in New York City, the privately held company is owned by MidOcean Partners and U.S. Equity Partners II, an investment fund sponsored by Wasserstein & Co., LP, and its co-investors. For additional information on the company and its businesses, visit www.penton.com.

About AT&T
AT&T Inc. (NYSE: T) is a premier communications holding company. Its subsidiaries and affiliates, AT&T operating companies, are the providers of AT&T services in the United States and around the world. Among their offerings are the world's most advanced IP-based business communications services and the nation's leading wireless, high speed Internet access and voice services. In domestic markets, AT&T is known for the directory publishing and advertising sales leadership of its Yellow Pages and YELLOWPAGES.COM organizations, and the AT&T brand is licensed to innovators in such fields as communications equipment. As part of its three-screen integration strategy, AT&T is expanding its TV entertainment offerings. Additional information about AT&T Inc. and the products and services provided by AT&T subsidiaries and affiliates is available at www.att.com.